You appear to be missing <server></server> and </world> tags in your config, i.e.
Code:
<server>
<world>
<shortname>NAMEOFSERVER</shortname>
<longname>NAMEOFSERVER</longname>
<!-- Only specify these two if you really think you need to. (read: You don't) -->
<address>server.dyndns.org</address>
<localaddress>192.168.0.1</localaddress>
<!-- Loginserver information. Defaults shown -->
<loginserver>
<host>localhost</host>
<port>5999</port>
<account></account>
<password></password>
</loginserver>
</world>
<!-- Database configuration, replaces db.ini. Defaults shown -->
<database>
<host>localhost</host>
<port>3306</port>
<username>root</username>
<password>******</password>
<db>peq</db>
</database>
</server>